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A Crypto Broker vs An Exchange: Functions, Trading Opportunities, Advantages

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Where to buy or sell crypto at a profit? First, you need to choose between brokers and exchanges. Although both types of platforms offer similar services, they are designed for different trading purposes. Read on to get a clear view of their crucial features and differences between them.

Let us explain the function of crypto brokers first. In practice, they work identically with Forex brokers. More to the point, such platforms usually offer access to a full range of assets, including tokens. So, they act as intermediaries between an investor and the market and offer trading crypto via CFDs.

To get a clear idea of this option, check its advantages:

  •   in addition to crypto CFDs, it provides access to a wide diversity of other financial instruments like Forex, commodities, shares, or metals;
  •   a good selection of payment methods, including transactions via credit cards;
  •   copy trading, robots, and other additional instruments are often offered;
  •   investment projects for passive income;
  •   referral programs;
  •   such platforms are officially regulated;
  •   customer support.

As for disadvantages, these are a limited selection of cryptocurrency pairs and absence of a direct trading function, instead, you can earn from CFDs, i.e. differences in rates at the times when a deal is opened and closed.

Speaking about exchanges, these are services designed exclusively for trading crypto/crypto and fiat/crypto pairs. Unlike a crypto broker, such a platform will not offer you access to any extra assets, except for coins, futures, crypto options, and non-fungible tokens.


  •   direct trading (by contrast with CFDs);
  •   access to hundreds of coins and tokens;
  •   diversified related instruments, like options;
  •   service tokens, which allow cutting trading commissions;
  •   lower trading fees compared to brokers;
  •   commission rules are easy to understand;
  •   earning from referral links;
  •   passive income from staking and lending;
  •   you can make deposits/withdrawals directly from/to your outside crypto wallet.


  •   no other assets except for crypto coins and derivatives;
  •   the majority of such sources are not regulated.

In the end, we will also name a few proven services so that you know which sources are safe to use: brokers — Exness, RoboForex, InstaForex, WorldForex, Forex Club; exchanges — Coinbase, Bybit, Binance, Kraken,

To summarize, if you are interested in crypto investments only, we would advise you to turn to an exchange, but, in case you plan to earn from other assets as well or are interested in long-term investments, a profile on a brokerage platform will be a more comfortable option for you.